Vietnam’s domestic scrap prices rose week over week to March 11 on rising downstream market prices, according to market sources.

Type 1 or H2-equivalent 3-6 mm scrap prices in northern Vietnam were heard increasing this week to Dong 8,700-9,700/kg ($332-$370/mt) on March 10. Prices in southern Vietnam for the same grade were heard similarly rising to Dong 8,300-8,900/kg ($316-339/mt) on the same day.

Scrap demand in Vietnam was strong with various new construction projects in the country, according to market sources.

“The demand for scrap is strong. Many new construction projects are underway. Vietnam mills are purchasing all types of scrap at competitive prices, regardless of the source,” said a Vietnam-based trader.

Amid rising imported scrap prices, domestic scrap remains a more competitive alternative to imports despite the price increase this week, a local mill source said.

“Local scrap prices have also increased by about $5-$10, but it is more manageable [than imported scrap],” said the mill sources.

Japan-origin H2 indicative offers to Vietnam were heard increasing week over week following March’s Kanto Tender and the recent freight rates uncertainties.

Platts, part of S&P Global Energy, assessed H2 ferrous scrap at Yen 49,500/mt ($313/mt) FOB Tokyo Bay on March 11, up Yen 2,000/mt week over week.

Japan-origin HS offers were similarly heard higher week over week at $385/mt CFR Vietnam on March 12.

Downstream, prices of finished products were increasing in tandem with rising raw material costs and higher transportation costs, according to the first Vietnam-based trader.